India becomes second largest green bonds market to tackle impact of climate change: IFC

New Delhi: The International Finance Corporation (IFC) has lauded the efforts of India in tackling the impact of climate change by taking proactive policy measures to support green financing initiatives.

IFC has released a report “Blended Finance for Climate Investments in India Today” which mentioned that India has significantly developed its climate actions, resulting in a path to achieving its Nationally Determined Contribution well before 2030.

“It is the only G20 nation in line with two degrees warming compared to its fair share contribution to climate action,” the report said.

Talking about the most recent measures, the IFC report states that the government proposed to issue Sovereign Green Bonds in 2022-23 for mobilising finance for green infrastructure projects.

“As of Feb. 2023, 50% of the total target of about $2 billion of green financing has been raised in the first tranche,” it said.

Appreciating the Sovereign Green Bonds initiatives of the Indian government, the IFC report stated that 50 percent of the total target of about two billion US dollars of green financing has been raised in the first tranche till February this year.

“Since the first issuance of GreenBonds that year, India has developed the 2nd largest green bonds market among emerging economies with cumulative issuances worth more than $10 billion by private companies and public sector entities,” it said.

The IFC report also highlights the Panchamrit commitments announced by Prime Minister Narendra Modi to meet India’s COP26 ambitions.

The report mentions that renewable energy sources contributed to 41 percent of India’s total installed capacity and the country stands fourth globally in terms of total renewable energy installed capacity. India is committed to meeting 50 percent of its energy requirements from renewable energy by 2030.

The report stated that the Reserve Bank of India included the small Renewable Energy energy sector under its priority sector lending scheme in 2015. Since the issuance of Green Bonds, India has developed the second-largest green bonds market among emerging economies.